China’s $2.9 trillion trust industry is emerging as a new threat to the world’s second-largest economy.
China’s trust sector, which has undergone at least six restructurings since its founding in 1979, is facing new losses, with Goldman Sachs Group Inc. yen).
Since last month, the Sino-Plant Enterprise Group and its affiliated Sino Credit International Trust have suspended payments on many high-yield investment products, sparking unusual protests in Beijing.
China Sino-Plant Group Plans Debt Restructuring, KPMG Appointed – Sources
Orient Capital Research Managing Director Andrew Collier Talks China’s Shadow Banking Crisis
Source: Bloomberg
In addition to managing more than 1 trillion yuan (approximately 20 trillion yen), Nakatsuku has maintained complex relationships with the wealthy, cash-strapped real estate development companies, and other financial institutions. There are widespread fears that the problem is becoming contagious.
“There will be a dangerous resonance between shadow banks and banks themselves,” Andrew Collier, managing director at Orient Capital Research, told Bloomberg Television. “This is going to happen later this year and it’s going to be very messy,” he said.
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news-rsf-original-reference paywall">Original title:China Braces for $38 Billion in Losses in Troubled Trust Sector(excerpt)
2023-08-24 01:20:00
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